Shares in Games Workshop (GWS.L) fell as much as 6.5% in London trading on Tuesday, erasing recent gains as the miniature wargames maker highlighted fresh headwinds from tariffs and rising plastic costs.
The sell-off came despite the company reporting record annual profits, signaling that investors are prioritizing near-term margin pressure over past performance.
The decline marks a sharp reversal from earlier sessions, when the stock had climbed after the company confirmed it had secured a reprieve from new US import duties.
That exemption had temporarily alleviated fears of margin compression from American trade policy.
However, the latest commentary suggests that broader geopolitical and supply chain risks are now dominating the investment thesis.
The company pointed to higher plastic prices stemming from the ongoing conflict in Iran as a key cost driver.